Design decisions determine how resources are used and value is created. Once locked in, they are costly to reverse. By embedding circular economycircular economyA systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. principles upstream, at the point where material demand, land use, and urban infrastructure are shaped, governments can influence outcomes for decades.
Part of a policy series on accelerating the circular economy transition, this brief focuses on three key systems: products, agricultural systems and cities. Together, they account for the vast majority of resource use, waste generation, and environmental impact, and crucially, all three are shaped by policy-led design decisions.
The way these systems are designed matters. Well-designed systems facilitate the circulation of products, parts, and materials at their highest value; enable regenerative agricultural and land-use practices; and shape urban environments that reduce waste and resource demand. A focused mix of upstream policy instruments can reduce reliance on virgin resources, improve material circulation, and deliver economic, environmental, and social benefits.
Three systems at the heart of the transition
Three systems stand out as particularly important: products, agricultural systems and cities. Policy instruments that act upstream can help reduce reliance on virgin resources, improve material circulation and nature regeneration, and enable long-term resilience through reduced dependency on finite resources, cost stabilisation, and protection against supply shocks.
Product policies (including design requirements, performance standards, and digital product passports) – ensure products, parts, and materials are designed to be kept in use at their highest value.
Agricultural policies (including incentive schemes, land-use frameworks, and outcome-based payments) – shift production away from resource-intensive inputs towards regenerative practices that rebuild natural capital.
Urban planning policies (including zoning regulations, spatial strategies, and redevelopment frameworks) – shape how materials, energy, water, and nutrients flow through cities, reducing waste and enabling circular solutions at scale.
Designing circular systems in practice
The following examples demonstrate what this looks like in practice. Case studies from China, France, India, Japan, the United States, and the European Union show how governments are already embedding circular economy principles upstream, through product regulation, agricultural incentives, and urban planning frameworks. They illustrate that the most effective approaches combine clear design requirements, long-term planning horizons, and strong coordination across government and value chains.
The brief makes five globally relevant, locally adaptable policy recommendations:
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Design it right: Make circular systems the norm
Design decisions determine how resources are used and value is created. In three key systems: products, agricultural systems and cities, prioritising upstream interventions can lock in long-term and system-level impact. Read the full brief to see how upstream design decisions across products, agricultural systems, and cities can lock in long-term circular economy outcomes.
